Global demand to climb 5.9% yearly through 2013

Global demand for abrasive products is forecast to climb 5.9 percent annually through 2013 to $38.2 billion. Market advances in developing parts of the Asia/ Pacific region, the Africa/Mideast region, Eastern Europe and Latin America will considerably outperform demand in the US, Western Europe and Japan. China, India and Russia will post some of the biggest sales gains. China, which recently surpassed the US to become the largest national market for abrasives, will account for two-thirds of all additional product demand through 2013. Sales advances are also expected to be healthy in Indonesia, Thailand and Turkey. Market conditions will be much less favorable in developed parts of the world, dampened by relatively sluggish durable goods manufacturing activity. Abrasives demand in the US, Italy and France will expand less than one percent annually through 2013, while annual product sales are expected to decline in Germany, Japan and the UK. However, higher per capita incomes will result in increased consumer expenditures for a variety of products made using abrasives, providing some offsetting support. The sales outlook is somewhat stronger for Canada, South Korea and Spain due to comparatively healthy growth in manufacturing output in these nations.

Nonmetallic abrasives to outpace metallic products

Overall abrasives demand is dominated by nonmetallic products, which include bonded abrasives, coated abrasives, and loose abrasive grains and powders. Nonmetallic abrasives are also expected to register larger sales gains through 2013 than metallic products such as steel shot and grit, and wire brushes and wheels. Loose abrasive grains and powders will post the strongest increases of any major product type, bolstered by their use in several markets with above-average growth prospects, including semiconductor manufacturing and microdermabrasion, and an ongoing trend toward the use of higher value products like specialty silica and synthetic diamond. Bonded abrasives demand will climb at the next fastest rate, benefitting from strong sales growth in China and other fast-growing developing markets where bonded abrasives account for the largest single share of sales, as well as by increased use of superabrasive products. However, coated abrasives will remain the biggest product category on a global basis, supported by an ongoing trend toward the use of more sophisticated manufacturing processes, in which products are machined closer to their final shape, boosting use of coated abrasives in finishing operations.

Transportation equipment to be fastest growing durable goods market

Durable goods manufacturing is far and away the largest market for abrasives, accounting for more than three-quarters of all product demand. Transportation equipment will record the largest gains of any major durable goods market through 2013, bolstered by an expected recovery in motor vehicle and motorcycle industry production as world economic conditions continue to improve. Demand for abrasives used in machinery manufacturing will also expand at an above-average pace, spurred by growing use of more advanced, higher priced items such as synthetic diamond and cubic boron nitride grinding wheels, and the presence of some fast growing applications in this market category, including wind power equipment.

Study coverage

This new industry study, World Abrasives presents historical demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 by product, market, world region and for 22 major countries. The study also considers key market environment factors, evaluates company market share and profiles 39 industry competitors worldwide.